Schroders’ Profit Before Tax Up 14% to £558.1 Million, £150 Million Savings Target Set

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Operating Profit for 2024 Showed a 3% Decrease and Totaled £640.5 Million

British asset management company Schroders has unveiled a comprehensive turnaround plan aimed at restoring profitable growth, which has been met with positive market response. The company’s 2024 financial results, while showing some areas of decline, surpassed analyst expectations.

Schroders demonstrated a solid financial performance in the fiscal 2024. The company’s profit before tax increased by 14%, reaching £558.1 million, a substantial rise from the £487.6 million recorded in the preceding year. Furthermore, the company’s basic earnings per share saw a 7% improvement, rising to 26.4 pence from 24.6 pence.
Operating profit for 2024 declined by 3% to £640.5 million, however, due to increased operating expenses, lower performance fees, and reduced contributions from joint ventures. Nevertheless, this figure exceeded the consensus estimates of £626 million. Net outflows also proved less severe than anticipated, with £10.8 billion in outflows compared to the expected £11.5 billion. The company’s stock rose 7.90% to £4.10 after the release of its latest fiscal results.

Chief Executive Richard Oldfield’s 3-year strategy focuses on several key areas. In addition to the £150 million cost savings target, the plan includes stabilizing revenues within the public markets division and strengthening the wealth management and Schroders Capital segments. These initiatives are designed to reduce the group’s cost-to-income ratio from 75% to below 70%.

The company has already begun implementing cost-saving measures, with £20 million in run-rate savings achieved in the first quarter of 2025. Schroders is also emphasizing its active investment approach, which it believes will deliver strong returns in volatile markets. While equities have experienced net outflows of £18.2 billion, demand for fixed income is increasing, and the company is expanding its private markets business.

Schroders also announced changes to its board. Deborah Waterhouse will not seek re-election at the upcoming Annual General Meeting, and Iain Mackay will succeed Ian King as Senior Independent Director. The company also maintained its final dividend of 15.0 pence per share, and a flat dividend of 21.5p for the year.